MOB-Ch3

Strategic management

A comprehensive and ongoing management process aimed at formulating and implementing effective strategies; a way of approaching business opportunities and challenges

strategy

A comprehensive plan for accomplishing an organization's goals

Operational goals

A goal set by and for an organization's lower-level managers, usually short term.

GE Business Screen

A method of evaluating businesses along two dimensions: (1) industry attractiveness and (2) competitive position; in general, the more attractive the industry and the more competitive the position, the more an organization should invest in a business

product life cycle

A model that portrays how sales volume for products changes over the life of products

Organizational weaknesses

A skill or capability that does not enable an organization to choose and implement strategies that support its mission

Organizational strengths

A skill or capability that enables an organization to create and implement its strategies

What is a tactical plan?

A specific process created to achieve a tactical goal in a short time frame

mission

A statement of an organization's fundamental purpose

overall cost leadership strategy

A strategy in which an organization attempts to gain a competitive advantage by reducing its costs below the costs of competing firms

focus strategy

A strategy in which an organization concentrates on a specific regional market, product line, or group of buyers

single-product strategy

A strategy in which an organization manufactures just one product or service and sells it in a single geographic market

related diversification

A strategy in which an organization operates in several businesses that are somehow linked with one another

unrelated diversification

A strategy in which an organization operates multiple businesses that are not logically associated with one another

differentiation strategy

A strategy in which an organization seeks to distinguish itself from competitors through the quality of its products or services

Diversification

The number of different businesses that an organization is engaged in and the extent to which these businesses are related to one another

Crisis management

The set of procedures the organization uses in the event of a disaster or other unexpected calamity

Strategy formulation

The set of processes involved in creating or determining an organization's strategies; it focuses on the content of strategies

Business-level strategy

The set of strategic alternatives from which an organization chooses as it conducts business in a particular industry or market

Corporate-level strategy

The set of strategic alternatives from which an organization chooses as it manages its operations simultaneously across several industries and several markets

Scope

When applied to strategy, it specifies the range of markets in which an organization will compete

Advantages of unrelated diversification

a business that uses this strategy should be able to achieve stable performance over time, thought to have resource allocation advantages.

effective strategies

a strategy that promotes a superior alignment between the organization and its environment and the achievement of strategic goals

conglomerates

compete in dozens or even hundreds of markets.

related diversification has three primary advantages:

First, it reduces an organization's dependence on any one of its business activities and thus reduces economic risk, by managing several businesses at the same time, an organization can reduce the overhead costs associated with managing any one business, related diversification allows an organization to exploit its strengths and capabilities in more than one business.

Example of Focus Strategy?

Fitbit purposely targeting active customers with their advertising and product placement

Standard operating procedure(SOP)-

Standing plan outlining steps to be followed in particular circumstances

Policy-

Standing plan specifying the organization's general response to a designated problem or situation

Rules and regulations-

Standing plans describing exactly how specific activities are to be carried out

What is the difference between strategic goals and tactical goals?

Strategic goals are set by and for top management(address scope and synergy), while tactical goals are set by and for middle managers(actually gets things done).

Environmental context flow chart

Strategic tactical operational

How is tactical planning related to strategic planning?

Tactical plans are used to execute specific parts of a larger strategic plan.

contingency planning

The determination of alternative courses of action to be taken if an intended plan is unexpectedly disrupted or rendered inappropriate

when it comes to executing tactical plans:

The manager needs to evaluate every course of action as it pertains to the end goal, The manager needs to monitor progress so that they can measure results, The manager needs to make sure that key decision makers have the appropriate information and resources.

SWOT

An acronym that stands for strengths, weaknesses, opportunities, and threats

Organizational opportunities

An area in the environment that, if exploited, may generate higher performance

Organizational threats

An area that increases the difficulty of an organization performing at a high level

distinctive competence

An organizational strength possessed by only a small number of competing firms

contingency planning comes into play at four action points:

At action point 1, management develops the organization's basic plans. At action point 2, the plan that management chooses is put into effect. The most important contingency events are also defined. action point 3. If the situation dictates, a contingency plan is implemented. Otherwise, the primary plan of action continues in force. Finally, action point 4 marks the successful completion of either the original or a contingency plan.

It is important for businesses to develop strategy at two distinct levels. What are these two levels?

Business level and corporate level

The General Electric (GE) business screen is an analytical method that would be most effectively utilized by:

Corporate-level leadership

Standing plan-

Developed for activities that recur regularly over a period of time

Single-use plan-

Developed to carry out a course of action not likely to be repeated in the future

A company setting themselves apart from the competition through the quality of its product is referred to as:

Differentiation strategy

Capitalizing on a SWOT Analysis entails which of the following?

Exploit opportunities and strengths; neutralize threats and weaknesses.

resource deployment

How an organization distributes its resources across the areas in which it competes

What are the four stages of the Product Life Cycle?

Introduction, growth, maturity, and decline

Which of the following is TRUE regarding Organizational Weaknesses?

Investments must be made to obtain the strengths needed to fix the weakness. The company mission may need to be modified in order to work around the current weaknesses. Organizational members are often reluctant to admit where they are lacking, making it hard to identify weaknesses.

Best example of a single-product strategy?

Marlboro

Portfolio management techniques

Methods that diversified organizations use to determine which businesses to engage in and how to manage these businesses to maximize corporate performance

Which of the following is the best example of a standing plan?

Microsoft implementing a new standard operating procedure for R&D project approval

strategy implementation

The methods by which strategies are operationalized or executed within the organization; it focuses on the processes through which strategies are achieved

Which of the following is true regarding operation plans?

Operational plans tend to involve lower-level managers.

What are the two categories of single-use plans?

Programs and projects

What are the four elements of an Organization's Mission?

Purpose, premises, values, and directions

Program-

Single-use plan for a large set of activities

Project-

Single-use plan of less scope and complexity than a program

What is a Distinctive Competence?

Something the company does exceptionally well

What is the purpose of the BCG Matrix?

To assist in strategic decisions regarding which business units to invest more heavily in

decline stage

demand for the product or technology decreases, the number of organizations producing the product drops, and total sales drop.

Importance of goals:

direction, improves planning, source of motivation, mechanism for evaluation and control

a well-conceived strategy addresses three areas:

distinctive competence, scope, and resource deployment.

BCG (Boston Consulting Group) matrix

provides a framework for evaluating the relative performance of businesses in which a diversified organization operates.

guideline of all tactical plans?

tactical planning requires the use of human resources, Tactical plans must specify resources and time frames, Tactical plans must address tactical goals drawn from an overarching strategic plan.